Co-op Bank Gets an Ethics Lesson

In the End, Being the 'Nice' Bank Was Not Enough

Troubled U.K. lender the Co-operative Bank may pride itself on its investing principles. But after a series of missteps in the basics of running a bank, it now urgently needs to plug a £1.5 billion capital hole. Co-op's plan to raise that money and keep its mutual parent the Co-operative Group as a majority owner has run aground. Instead, Co-op Bank bondholders led by—horrors!—two U.S. hedge...